Gov't hints at intervening in forex market
Deputy Prime Minister and Finance Minister Hong Nam-ki, right, speaks during a National Assembly audit of his ministry on Yeouido, Seoul. YonhapBy Lee Kyung-min The country’s finance minister has hinted at intervening in the local foreign currency market as a pre-emptive measure to limit swings in the value of the won hit by supply and demand mismatch amid continued market volatility. This possibility is a response to the local currency's rapid strengthening against the dollar over the past month, a cause for major concern to many growth driver firms -― notably manufacturers ― in export-reliant Korea. Sustained appreciation of the won against the dollar will sap the competitive edge of Korean export firms, ending up tightening domestic consumption – a dreadful combination that will frustrate the prospect of the much-awaited economic recovery. Also fanned by the currency losing value is the fear of deflation ― an overall decline in the general prices of goods and services ― a lingering concern dreaded by economists and policymakers despite a recent recovery in co
